Specialized services outsourcing and Staffing in
MEXICO
GMK is registered as a specialized service provider in Mexico. We offer our clients staffing solutions, business process outsourcing, and payroll services in full compliance with the new laws.
In addition, GMK now provides support services to assist companies to comply with the new law. GMK helps them shift to a fully compliant supplier base that can cover all functional areas. To further ensure you continue operating successfully and smoothly in this transition, our managed services is focused on becoming your one-stop company for your outsourcing and staffing needs in Mexico.
Managed Services
On May 24th, 2021 the Mexican Ministry of Labor and Social Welfare issued general provisions on outsourcing.
The agreement issued by the ministry contains the general provisions for the registration of legal entities that provide specialized services and that for this purpose, provide or make available their own workers for the benefit of another to perform the services.
Before the new law :
Some informal payroll companies called “Pagadoras” used fiscal loopholes to lessen the payment of taxes and benefits to workers. This was a process that grew nationwide, affecting the government and employees paid through these types of companies.
After the new law :
The government of Mexico recently approved a Law requesting outsourcing companies to register as “specialized services providers”. The registration process requires companies to prove that they have paid all their taxes since the beginning of their operations, including a letter of good standing from the Mexican revenue agency, the social security, and the state-run worker’s compensation agency.
THE FUTURE
Companies in Mexico that want to outsource some functional areas must do it through agencies that are registered as specialized service providers. The new law limits the outsourcing of employees to support functions that are not directly related to the main objective of the service or product of the client.
LIMITATIONS
Companies are not going to be able to utilize outsourcing or staffing companies to manufacture or render their main services to the client, but will be able to use staffing and specialized services for support services.
WHO IS AFFECTED
BY THIS LAW
The companies that have legal entities in Mexico that use payroll outsourcing will need to find new suppliers that have the registration or bring their previously subcontracted employees as full-time employees (insourcing).
The outsourcing companies that didn’t fulfill their tax obligations will not be able to register and cannot operate. It is important, if you have outsourced employees through a third party that cannot register, that you take action to bring in the employees as your own employees or contact us so we can help you with the transition to a fully compliant structure.
WHO IS NOT AFFECTED
BY THIS LAW
Foreign companies that do not have a local entity can use local outsourcing, staffing, or global payroll services without limitations.
The Law only applies to companies that make available their own workers for the benefit of another to perform the specialized services or jobs. The changes do not apply if the client hires another company to produce deliverables or services without supervising the employees, and only pays for the deliverables (which should be clearly stated in the agreement).
Gracemark is a registered specialized services supplier!
Contact us for your outsourcing, staffing, and payroll needs in Mexico.
SOME OF OUR SOFT LANDING AND EXPANSIONS SOLUTIONS FOR LATAM
- Global immigration and visa services
- Mobilization and logistics services
- Relocation management
- Payroll outsourcing and taxation services
- Contractor care management
- Global Employment Outsourcing (GEO)
- Employer of Record (EOR)